Jackson is directing The Hobbit

Peter Jackson has decided to direct both installments of the two-part prequel, the Tintin trilogy and The Hobbit and is in final negotiations with Warner Bros., New Line, and MGM at this very moment.

This couldn't be better news for fans of the Lord of the Rings trilogy, who were sorely disappointed when Pan's Labyrinth auteur Guillermo del Toro walked away from the project last month.

Del Toro's departure left the future of The Hobbit in doubt, especially after David Dobkin and Brett Ratner's names were floated as possible replacements.

The huge box office gross that Jackson's presence guarantees may be the only thing that will convince MGM to risk its financially unsure future and finally get this project greenlit. The Hobbit has languished in development hell for a long time - too long for del Toro - but now that Jackson is on board, we can expect things to get moving quickly in the director's native New Zealand, where both films will be shot back-to-back.

Deadline